There is a new grant opportunity for California small businesses. On 11/30/2020, CA authorized $500 million in grants to eligible CA small businesses impacted by Covid-19. See https://www.gov.ca.gov/2020/11/30/governor-newsom-announces-immediate-assistance-for-businesses-impacted-by-covid-19-including-temporary-tax-relief-and-500-million-in-grants/ for the press release.

These are additional grants allocated by CA and are separate from EIDL and PPP authorized by the federal government. The CA Small Business Development Center is offering a free 1-hour webinar on the program. Here’s the link to register for the webinar https://www.californiasbdc.org/covid-19-relief-grant These webinars are daily at 11 am until Jan 4th.

Detailed information on the grant program can be found at https://careliefgrant.com/ The following are just a few of the highlights (not all inclusive) that I thought would be most important to you:

Grant Amounts

· Yearly Gross Revenue $1,000 - $100,000 eligible for $5,000 grant

· Yearly Gross Revenue $100,000 - $1M eligible for $15,000 grant

· Yearly Gross Revenue $1M - $2.5M eligible for $25,000 grant

Eligibility

· Must be an active California business since June 1, 2019

· Eligible businesses include S corps, C corps, partnerships, LLCs, non-profits (including school PTO and enrichment programs), and Schedule C Self-Employed individuals.

· Must have been impacted by Covid-19

Other Notable Items

· Does NOT have to be repaid. This is grant money.

· Grants will be taxable in the year received.

· Application opens Dec 30 and closes Jan 8. It is NOT first come, first served.

· Grant applications are evaluated and ranked based on various criteria: geographical, industry classification, and underserved business owner groups (women, minority, veteran, low to moderate income/rural)

As a reminder, contact your business or tax advisor to discuss the business and tax ramifications specific to your situation.